ED arrests Sriki, 2 others in Karnataka Bitcoin scam
Bengaluru: The Enforcement Directorate (ED) has arrested key accused Srikrishna aka Sriki in connection with the alleged Bitcoin scam and hacking of the Karnataka government’s e-procurement portal, the officials said on Saturday.
Along with Sriki, the ED also arrested Robin Khandeval and Sunish Hegde after conducting an extensive investigation into the case over the past several years.
The arrests come days after ED officials conducted raids at 12 locations on April 20, including premises linked to Sriki, former state Congress youth leader Mohammed Nalapad and Hakeeb Rahman Khan, grandson of former Union Minister K. Rehman Khan.
Following Sriki’s arrest, political attention has shifted towards Mohammed Nalapad, who is now facing increased scrutiny in the case. Investigators are probing Nalapad’s alleged links with Sriki and other accused persons in the scam.
According to sources, the ED is currently examining Nalapad’s role in the case and collecting documents related to his alleged connections with several accused individuals. Nalapad had earlier appeared twice before the Special Investigation Team (SIT) for questioning during the state police probe.
The case relates to the alleged hacking of the Karnataka government’s e-procurement website and the illegal transfer of government funds to multiple accounts. Following the allegations, the Karnataka government had ordered a CID SIT investigation into the matter.
During the investigation, authorities reportedly uncovered the theft and illegal transfer of cryptocurrencies through several digital wallets. The SIT probe had also allegedly found links between Nalapad and some of the accused persons involved in the case.
Meanwhile, the three arrested accused — Sriki, Robin Khandeval and Sunish Hegde — were produced before a judge, following which the ED Special Court remanded them to ED custody for 10 days till May 19.
The ED had sought custody of the accused for further interrogation in connection with the wider financial and cryptocurrency-related investigation.